Ep2 with Travis Kling:
This podcast nailed it for me. There are sections in there that make me jump up and down with agreement and enthusiasm. When I was in college I remember the economic lesson of efficient markets. It’s a vivid memory. It’s extremely clear because after learning about what it is, i said to myself “that’s not possible”. But then i thought “well, they teach it, so it must be true. So, if they teach it, and i don’t get it, then i must be the dumb one." So i bailed out of the study of economics and it was perfectly fine since my heart and skills were headed down the engineering path. There is usually a lot more certainty in engineering.
Now years after several great books about behavioral economics have come out with some Nobel prizes given out too in recognition of it, and I am a rabid fan of the discipline, here is this super-engineered bitcoin in a completely irrational and inefficient market system created by super-idiosyncratic unpredictable humans. How perfect could my timing be? Travis Kling talks in this podcast about how behavioral economics really hit home with him. And as he talks about efficient markets, he mentions that even when he went to school (more recently than i), they still didn't teach nearly enough about the irrationality of people and how that creates lots and lots of inefficient markets.
I have this crazy idea to get together a small number of like-minded friends and acquaintances who are speculators and investors who want to get exposure to bitcoin. I want to pool together ten of us to put together a $250k fund to participate in Travis Kling’s new venture. Judging by his history as a long/short trader, he knows what he is doing. In the most simplistic view, either bitcoin goes to zero in the next several years, or it goes to levels seen in the recent past, and more importantly it goes to much higher levels that industry insiders and financial institutions are betting we will see. Call me crazy, but that seems to be a reasonable bet to me if you can afford to lose $25k. (Presuming ten equal participants at $25k each.)
My name is Dae Yu.